Four Charged With Insider Trading
Following a two-and-a-half year investigation by the UK Financial Services Authority (FSA), four men were charged with conspiracy to commit insider dealing.
Operation Tabernula, Latin for little tavern, was a cooperative effort between the FSA and the Serious Organised Crime Agency as a result of which nine people have been arrested and interrogated. Two years ago the authorities raided 16 addresses in London and the south-east, all homes or offices of people working for Deutsche Bank, BNP Paribas, Moore Capital and Novum Securities.
The conspiracy in question spanned between 1 November 2006 and 23 March 2010 and includes Martyn Dodgson, 41, senior corporate broker at Deutsche Bank, Andrew Hind, 52, a company director and two private traders – Benjamin Anderson, 68, and Iraj Parvizi, 46. Five other people are still under investigation on suspicion of being part of an insider trading ring said to have made up to £22 million.
All four of the defendants were given unconditional bail while they await trial. Their case has been transferred to Southwark Crown Court in London for further proceedings on 21 December following a magistrates hearing on Tuesday 23 October.
“All four are on unconditional bail and we don’t ask for any conditions to be attached.” said Neil Saunders, the QC prosecuting for the FSA, as quoted by The Times.
!m[City Watchdog to Be Split in Three Separate Organizations](/uploads/story/628/thumbs/pic1_inline.png)The bail terms allow Mr Parvizi to continue his frequent travels between St John’s Wood in North London, Spain and Dubai. Today was the first court appearance for the defendants, who were charged at police stations.
Starting next year the UK regulator’s functions will be split into three new departments.
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The Financial Policy Committee (FPC) will be a new body within the Bank of England (BoE) with the purpose of identifying emerging problems in the financial system and taking action to protect the wider economy.
The Prudential Regulation Authority (PRA) will be responsible for the day-to-day supervision of financial institutions that manage significant risk on their balance sheet. It will adopt a more judgement-focused approach to regulation so that business models can be challenged, risks identified and action taken to preserve financial stability.
The Financial Conduct Authority (FCA) will take a tough approach to regulating how firms conduct their businesses. Its purpose will be to promote confidence and transparency in financial services and ensure greater consumer protection.
Martin Wheatley, FCA chief executive, gave a speech last month to delegates at the Association of British Insurers conference where he outlined the new powers to be granted to the watchdog.
“The key difference between the future and now, and forgive me for being scary in my use of analogy, is we are being given the power to shoot first and ask questions later,” Mr Wheatley said. Two weeks later he also told the Independent newspaper that the regulator had “barely got started” on its crackdown of poor practice in the market and those who believe the FSA has been too tough will have a “big wake-up call morning”.
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